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Troubled property fund confirms £1.1bn float plans

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Troubled property fund confirms £1.1bn float plans

The troubled Brandeaux Student Accommodation fund has confirmed it will float its portfolio in a bid to pay back investors.

The £1.1 billion portfolio will be acquired by Liberty Living, a brand of the Brandeaux Student Accommodation fund, who will then launch an initial public offering of its ordinary shares.

The Brandeaux group said the float would create liquidity to allow it to pay back its investors through redemptions, something that the group has struggled with in the past.

The group r suspended its six open-ended funds in July 2013 and started winding them down in January as the illiquidity of the portfolios meant it could not meet redemptions.

In a London Stock Exchange announcement, the group said: ‘The global offer will allow the fund, which is currently an open-ended investment company, to create liquidity for its shareholders who want to redeem their investment and provide a structure to facilitate future redemptions.’

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